Contracts
Clause library
Twelve clauses from physician employment contracts. Each one appears in two versions, employer-friendly and physician-friendly, with questions worth asking about yours.
The sample wording is illustrative and was written by Andwise. It is not model contract language. Have an attorney licensed in your state review any contract before you sign it.
Assignment
Assignment clauses allow or prohibit transferring the contract's rights and duties to a third party. If an employer assigns the contract to a new owner, such as after an acquisition, that owner takes over paying you and covering your malpractice.
The Employer may assign or delegate any of the physician's duties or responsibilities to any qualified individual at any time for any reason.
The Employer may only delegate the physician's duties to another physician of equal or greater qualifications, with prior notice to the physician.
Questions to ask
- Can the employer assign the contract to a buyer without your consent?
- Do your non-compete and other terms transfer to the new owner?
- Can you end the contract if it is assigned?
Benefits
The benefits the employer provides, such as health insurance, retirement contributions, paid time off and an education allowance.
Physician is eligible for standard benefits, which include basic health insurance and a retirement plan without employer contributions.
Physician receives health insurance with 75% of the premium covered by the Employer, a retirement plan with matching contributions up to 3%, and a yearly professional development allowance.
Questions to ask
- When does retirement matching start, and what is the vesting schedule?
- Is CME time separate from vacation?
- Are licensing, board and DEA fees covered?
Call schedule
Your on-call obligations: how often, how call is divided among colleagues, and whether call beyond a set amount is paid.
Physician will take call as assigned by the Employer.
Physician will share call equally with other physicians in the department, not to exceed one in [N] weekends. Call beyond this amount is paid at $[X] per shift.
Questions to ask
- How many physicians share call today, and what happens to your share if someone leaves?
- Is extra call paid, and at what rate?
- Does call include coverage at more than one site?
Clinical autonomy
How much say you have over treatment decisions, scheduling and templates compared with employer protocols.
Decisions and treatment plans must align strictly with Employer-established protocols.
Physician will exercise independent professional judgment in treatment decisions, consistent with broad clinical guidelines and occasional peer review.
Questions to ask
- Who sets your patient schedule and visit lengths?
- Can protocols change during the contract without your agreement?
- Is the clause tied to compensation or termination for cause?
Compensation and wRVU
How you are paid: a guaranteed base salary, a productivity formula (often per wRVU, the work relative value unit), bonuses, or a mix. The formula and when the guarantee ends matter as much as the starting number.
Physician's compensation will be determined annually by the Employer based on productivity and other factors at the Employer's discretion.
Physician will receive a guaranteed base salary of $[X] per year for the first two years, plus $[Y] per wRVU above [Z] wRVUs per year, paid quarterly.
Questions to ask
- How long is the base salary guaranteed, and what replaces it afterward?
- Which year's CMS RVU values does the contract use, and what happens to your threshold when CMS revalues codes?
- What is the dollar rate per wRVU, and can the employer change it during the contract?
- Who decides which bonus targets were met, and is that decision written into the contract?
Indemnification
An indemnification clause makes one party reimburse the other for damages, losses or legal costs from claims about the physician's work. If you agree to indemnify your employer, you may owe what the employer would otherwise have paid.
Physician shall indemnify and hold the Employer harmless against any claims arising from their professional services.
Employer shall indemnify the physician against claims related to the services provided, except in cases of gross negligence or intentional misconduct.
Questions to ask
- Does your malpractice policy cover amounts you agree to pay under this clause?
- Is the obligation mutual?
- Are there limits or exclusions, such as gross negligence?
Intellectual property
These clauses set who owns inventions, writing or other work you create during employment. Broad versions cover anything you create; narrow ones cover only work tied to your duties.
All intellectual property developed by the physician during employment shall be the sole property of the Employer.
Intellectual property related to the physician's duties is owned by the Employer, but the physician retains rights to independent projects.
Questions to ask
- Does the clause cover work done on your own time and equipment?
- Can you list existing projects that stay yours?
- How does it interact with the outside activities clause?
Malpractice and tail coverage
Professional liability insurance: who buys it, the coverage limits, and who pays for tail coverage, which covers claims filed after you leave for care you gave while employed.
Physician is responsible for securing and paying for their own malpractice insurance, including tail coverage.
Employer provides professional liability insurance with limits of $1,000,000 per claim and $3,000,000 aggregate, and pays for tail coverage when employment ends for any reason.
Questions to ask
- Is the policy claims-made or occurrence?
- Who pays for tail coverage, and does the answer change depending on who ends the contract?
- What are the per-claim and aggregate limits?
Non-compete
A non-compete restricts where and for how long you may practice after leaving. Many states now limit or ban physician non-competes; see the state tracker for the law where you will work.
Physician shall not practice for a period of 24 months within 100 miles of any location owned by [Organization].
Physician is restricted from practice in the same specialty within a 25-mile radius of [Organization] for six months post-termination.
Questions to ask
- Is the radius measured from your practice site or from every location the employer owns?
- Does the restriction apply if the employer terminates you without cause?
- Is there a buyout, and how is the amount calculated?
- What does your state's law say about physician non-competes?
Non-solicitation
Non-solicitation clauses bar you from soliciting your former employer's patients or staff. Solicitation may be defined as broadly as any communication or as narrowly as recruiting for a specific purpose.
Physician agrees not to solicit or accept business from clients or patients of the Employer for a period of two years post-termination.
Physician is restricted from soliciting employees or patients for one year, only within a specified geographic area.
Questions to ask
- Does the clause stop you from accepting patients who seek you out, or only from contacting them?
- Can you tell your patients where you are going?
- Does it cover staff you hire after leaving, or only people you recruit?
Outside activities and moonlighting
These clauses limit secondary employment, moonlighting, locums, consulting or other work outside the job, often unless the employer consents.
Physician shall not engage in any outside work or moonlighting activities.
Physician may engage in outside work or moonlighting activities provided it does not interfere with their duties to the Employer.
Questions to ask
- Does the clause cover non-clinical work such as writing, teaching or consulting?
- If consent is required, is there a deadline for the employer to answer?
- Does the employer claim income from outside work?
Termination
Termination without cause lets either side end the contract without giving a reason, after a notice period. It does not let an employer fire you for discriminatory reasons or in violation of other employment laws.
The Employer may terminate this agreement at any time for any reason or no reason, without notice or further obligation.
Either party may terminate this agreement at any time for any reason or no reason, with 60 days' prior written notice.
Questions to ask
- Is the notice period the same length for you and for the employer?
- If the employer ends the contract without cause, does the non-compete still apply?
- Who pays for tail coverage if the contract ends without cause?